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Notably, the company topped the Zacks Consensus Estimate in each of the trailing four quarters with a positive earnings surprise of 14.3%. However, it remains to be seen if Thomson Reuters will be able to keep its earnings surprise streak alive this time.

Let’s see how things are shaping up for this announcement.

Factors Influencing Q4

Thomson Reuters continues to benefit from greater operating leverage and is likely to record higher revenues and margins in the quarter on the back of its simplification initiatives. Management remains optimistic about the company’s future performance, given its constant endeavors to implement core strategies and achieve financial goals. We believe that its cost-containment efforts, share buyback plan and impressive performance of the underlying subscription revenues bode well.

The company’s core subscription businesses continue to perform well and it is encouraging to see its Financial & Risk business — the largest revenue generating segment — reporting strong revenue growth. The company has been working to achieve its earnings target for 2017. It also intends to keep improving its free cash flow per share.

Thomson Reuters expects its underlying fundamentals to improve in the last quarter of 2017. The company also expects to benefit from its integrated technology system that takes structured and unstructured information and turns it into a structured taxonomy with a focus on the financial services industry. However, adverse currency fluctuations may play a spoilsport in the to-be-reported quarter.

Earnings Whispers

Our proven model does not conclusively show that Thomson Reuters is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Home Depot, Inc. (HD - Free Report) has an Earnings ESP of +1.66% and a Zacks Rank #2.

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